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Obama vows to veto Keystone pipeline

The Republicans took control of the U.S. Senate Tuesday with a promise to introduce and pass a bill to build Keystone, but the president says 'not so fast'

U.S. President Barack Obama has vowed to veto the Keystone XL pipeline that would carry Alberta crude to Texas refineries. Photo: Pablo Martinez Monsivais/Associated Press

The Associated Press

Published: January 6, 2015 - 1:36 PM

Updated: January 6, 2015 - 1:39 PM

By Dina Cappiello

WASHINGTON — Hopes the Keystone XL pipeline will be built before 2016 died Tuesday as President Barack Obama said he will veto any Republican legislation to construct the oil thoroughfare.

Tuesday marked the first day where the Republicans took control of both houses of U.S. Congress. The first piece of legislation in the Republican-controlled U.S. Senate will seek to approve the Keystone XL oil pipeline. It would carry heavy crude from the Alberta oil sands to Texas refineries.

It will test President Barack Obama on a project he’s been increasingly critical about, saying it wouldn’t have a huge benefit for U.S. consumers, and in his convictions to veto anything he considers egregious from legislators from the other side of the aisle.

The bipartisan legislation, which is sponsored by 54 Republicans and six Democrats, was expected to be introduced later Tuesday.

Supporters said they had 63 votes in favour of the bill, enough to overcome a filibuster but not a presidential veto.

The House of Representatives is expected to vote and pass a bill approving the pipeline Friday. The bill is identical to one that fell a single vote shy of passage in November.

Calgary-based TransCanada has been waiting more than six years for appropal of the Keystone project, which would carry oilsands bitumen from Alberta to refineries in Texas.

TransCanada President and CEO Russ Girling issued a statement in response to developments in Washington today.

The statement addressed the falling oil prices and what they mean for the project’s need.

“Keystone XL is a project that was needed when oil prices were less than $40 in 2008 when we first made our application, more than $100 last year, or $50 today,” the statement said.